## Option Pricing

Options (or Derivatives in general) are instruments whose payoffs depend on the movement of underlying assets. The value of the derivative instrument therefore can be evaluated by creating and valuing a portfolio of assets whose prices are easily observed in the market and whose cash flows replicate those of the options.

The methodologies used to price a derivative security may vary from closed form solutions such as the Black-Scholes option pricing formula, to numerical methods such as the binomial trees and Monte Carlo simulation.

Our Option pricing guides cover vanilla options, exotics, interest rate derivatives & cross currency swaps. We use Monte Carlo Simulation for exotics, Black Scholes for intuition, Binomial trees for American options & forward and zero curves for interest rate derivatives

- How to calculate the value of a forward contract in Excel
- How to calculate the forward price of a security in Excel
- How to determine Spot Rates and Forward Rates & Yield to Maturity
- How to calculate the values of Forward Rate Agreements (FRA) and Forward Exchange Rates
- Simulation Models – Pricing Ladder Options using Monte Carlo Simulations
- Pricing Exotic Options using Monte Carlo Simulations
- Understanding delta hedging for options

- Derivative Products
- Derivatives Crash Course for Dummies
- Advanced Derivatives Crash Course – Structured products, credit derivatives, exotics
- Derivative Pricing, Risk Management, Financial Engineering – Equation Reference
- Options pricing with Binomial trees in Excel spreadsheets
- Pricing Interest Rate Swaps – The valuation and MTM course
- Interest Rate Options – Pricing Caps and Floors
- Computational Finance: Building Monte Carlo (MC) Simulators in Excel
- Monte Carlo Simulation – How to reference
- Convergence and Variance Reduction procedures for option pricing models
- War on Greeks. The weekend Option pricing challenge
- Selling derivative products to treasury customers
- The Option Pricing models 5 nights crash course
- Option Pricing course guide for dummies

# Recent Posts

- Simulation tools. Variance reduction techniques for option pricing models
- Options Pricing Training: Interest Rate Options: Pricing Caps and Floors
- Forwards and Swaps: Interest Rates Models: Bootstrapping the Zero curve and Implied Forward curve
- Options, Forwards, Futures: Pricing Interest Rate Swaps
- Options Pricing Training: Binomial Trees
- Options and Futures Training: Basic Options Trading Strategies
- Derivatives Training: Options Pricing and Products reference
- Options and Derivatives Training: Introduction to Derivatives: Options, Futures, Forwards and Swaps
- Options Pricing – Binomial Trees – Pricing Sudden death Options – Down and in call options
- Options pricing – Pricing Knockout exotic options – Sudden Death Options – Down and out call options

# Premium Courses:

**PDF & EXCEL**

**Videos**

- Derivatives Terminology Crash Course
- Derivatives Pricing – Package
- Derivative Products
- Derivative Products – Package
- Derivative Pricing – Binomial Trees EXCEL Example
- Derivative Pricing – Binomial Trees – Efficient Approach – Print Edition
- Forward Prices, Forward Rates and Forward Rate Agreements (FRA) – EXCEL Example
- Forward Prices, Spot Rates & Forward Rates, Yield-to-Maturity, Forward Rate Agreements (FRA), Forward Contracts and Forward Exchange Rates – PDF
- Forward Prices and Forward Rates – Calculation reference & detailed examples
- Monte Carlo Simulation – Commodity – Example
- Monte Carlo Simulation – Currency – Example
- Monte Carlo Simulation – Equity – Example
- Monte Carlo Simulation – Package
- Monte Carlo Simulator with Historical Returns
- Pricing IRS – Module I – Term Structures
- Pricing IRS – Module I – Term Structures EXCEL Example
- Pricing IRS – Module II – IRS and CCS
- Pricing IRS – Module II – IRS and CCS EXCEL Example
- Pricing Interest Rate Options – Module III
- Pricing Interest Rate Options – Module III EXCEL Example
- Pricing Ladder Options using a Monte Carlo Simulator
- Pricing Interest Rate Swaps and Interest Rate Options – Package
- Valuing Options – Black Scholes Example
- Valuing Options – Binomial Tree – Traditional Approach – EXCEL Example